Current Assets Are Cash Itself or Items That Could Quickly

question 20

True/False

Current assets are cash itself or items that could quickly be turned into cash (liquidated), or will be used by the business within one year.

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Definitions:

Current GAAP

Generally Accepted Accounting Principles as they are presently defined and practiced in the United States for financial reporting.

Direct Method

A way of reporting cash flows from operating activities by showing major classes of gross cash receipts and payments.

Operating Activities

Operating activities involve the primary day-to-day functions of a business related to producing and selling its goods or services.

Statement of Cash Flows

A financial statement that provides a detailed analysis of what happened to a company's cash during a period, categorizing cash flows into operating, investing, and financing activities.